Look for Tech Stocks Delivering Revenues, Not Promises of Growth

When investors expect a stock to grow like gangbusters, any sign of slowing growth can pose problems. But many companies offer decent growth right now, but not necessarily exceptional growth. Such companies can likely deliver strong returns, at least for investors who are patient over time. That extends to growth stocks. AI is a trend that will take years to play out, much like the rollout of the internet. Investors who are focused on the fastest-growth stocks now are getting hit ...
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Stick With Conventional Companies Still Growing Profits

During a market boom, it’s tempting to start buying into more speculative companies. While that can potentially mean bigger returns, it also increases the risks. Conversely, companies that have a conventional line of business can continue to grow, even if they also invest in more speculative endeavors. Right now, many companies that have been dabbling in new technologies are seeing lower-than-expected demand. But as long as their core business is strong, shares should continue to rise. For instance, demand for electric vehicles ...
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A Tech Name Worth Buying on Market Dips

Last week’s market selloff was heavy on tech. Given how tech stocks tend to outperform the market, their underperformance in a selloff makes sense. Investors patient enough to wait for a 10-20% pullback in industry-leading tech stocks are often rewarded for their performance afterwards. Getting a reasonable entry price on a high-growth stock can lead to better returns than just buying at the top, or just holding indefinitely. With last week’s selloff hitting the chip space rather hard, semiconductor stocks might be ...
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Fixable Problems Create Buying Opportunities

Markets don’t just react to events. They often overreact. That’s why when a short-term problem flares up and goes away, the market tends to react sharply, then revert back to whatever it was doing before. Last week saw the largest IT outage in history. A security software update caused a number of systems to slow down, crash, or otherwise stop responding altogether. However, the world was largely able to move on and get its work done. However, the cybersecurity stock involved, CrowdStrike ...
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For Reasonable Values Now, Look Overseas

With the stock market starting to show some love for smaller companies, it could also be a time to look towards investing overseas. That’s because the market’s returns have been dominated by big-cap tech stocks domiciled in the United States. Investing internationally offers investors global diversification. And with inflation on the decline globally, and with global central banks nearing a point of interest rate cuts, international stocks stand to benefit in the years ahead. While investing internationally can be challenging, investing in ...
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Follow the Market’s Rotation to Value with Stocks Ready to Break Higher

After dominating market returns for the past 18 months, tech stocks are starting to take a breather. But the overall market continues to trend higher, thanks to a rotation underway. Investors are finally taking some profits in tech and moving that cash into lesser-loved stocks. Those stocks tend to be a bit slower moving, but after tech’s latest outperformance, they may take the lead in the second half of the year. That could mean good returns in more value-oriented stocks. One such ...
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This Play in a Long-Term Market Beating Sector Could Be a Winner Now

Investors must often contend with different market cycles. Even in a bull market, some sectors will lead at times. Tech has been leading for some time. Now, its returns have started to slow. But other sectors are starting to join the market rally. That’s good news, as it opens up new investment and trading opportunities alike. Many sectors are great at outperforming the market over time, even if their monthly returns aren’t anything special. For instance, health insurance companies tend to beat ...
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If You Can’t Beat ‘Em on Fees, Join ‘Em

Fees, surcharges, fines, taxes, and other add-ons are a perpetual annoyance. However, for investors, companies that are able to charge extra fees, or increase their fees substantially over time, may be on to something. That’s because companies that can charge more and still keep their customers are likely on track to perform well as a business. And that means investors should be able to see increasing profits and a higher share price over time. With earnings season underway, a big way banks ...
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